Understanding Michigan Surrogacy Compensation
On April 2, 2025, Michigan made history by passing the Assisted Reproduction and Surrogacy Parentage Act (ARSPA). This new law finally ended Michigan’s decades-long ban on paid surrogacy, making it legal for intended parents and surrogates to enter fair, enforceable agreements.
What does this mean? Families and surrogates in Michigan now have the same protections that already existed in most other states. Agreements can include compensation, expenses, and legal safeguards—without fear of penalties.
Here’s a simple breakdown of how compensation works under the new law:
1. Base Compensation
- Surrogates receive a base fee for the time, effort, and responsibility of carrying a pregnancy.
- Payments usually start once a pregnancy is confirmed by ultrasound and are made monthly until delivery.
- Some of this compensation becomes guaranteed after certain stages of pregnancy—so the surrogate is protected even if there’s a loss or early delivery.
- The total amount depends on factors like experience, whether the surrogate has carried before, and if an agency is involved.
2. Reimbursed Expenses
The law only requires intended parents to pay for the surrogate’s own lawyer. But in practice, most agreements cover much more to make sure the surrogate is never out of pocket.
Common reimbursements include:
- Health insurance premiums and life/accident insurance
- Monthly allowances for gas, medications, and pregnancy supplies
- Maternity clothes
- Travel to medical appointments
- Extra help if bed rest is required (like childcare or housekeeping)
3. Medical Procedures & Special Circumstances
Contracts often include additional payments if certain medical events occur, such as:
- Cesarean delivery
- Pregnancy reduction procedures
- Surgery after miscarriage
- Other serious complications
If long-term consequences happen such as losing the ability to have children agreements may provide additional compensation.
4. Escrow Accounts (Safe Payment Management)
Even though Michigan doesn’t require it, most families use an escrow account (a neutral third party who holds and releases funds).
- Intended parents deposit the money at the start.
- The escrow company pays the surrogate on a set schedule.
- This guarantees payments are secure, on time, and documented for everyone’s peace of mind.
5. Taxes
Surrogates should plan for taxes. The IRS has not issued special rules, but compensation is generally treated as taxable income. Both intended parents and surrogates should speak with a tax professional to prepare properly.
6. Legal Protections
One of the most important parts of Michigan’s new law is that both sides must have their own Michigan-licensed attorney. This ensures:
- Surrogates fully understand their rights.
- Intended parents are legally protected.
- Agreements are enforceable in court.
The law also creates a clear process for intended parents to be recognized as the baby’s legal parents from birth, without the need for adoption.
Why This Matters
Before 2025, Michigan was the last state in the U.S. that banned paid surrogacy, and families often had to go out of state. Now, surrogates and intended parents can move forward confidently supported by modern, family-friendly laws.
This change is more than legal, it’s personal. Families like the Myers family, who once had to adopt their own biological twins due to the old ban, now celebrate the freedom and fairness that ARSPA brings.
In Summary
Michigan’s new surrogacy law gives families and surrogates:
- Legal clarity and protection
- Fair compensation options
- Security through escrow accounts
- Independent legal guidance
- A streamlined path to parenthood
Whether you’re thinking about becoming a surrogate or building your family through surrogacy, Michigan is now a safe and supportive place to start your journey.